Essays on Integrating Galaxy Pharma into Vibrant Ltd Case Study

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The paper "Integrating Galaxy Pharma into Vibrant Ltd" is a perfect example of a case study on management. Over the years, Vibrant Ltd has experienced steady growth in the pharmaceutical market but due to an increase in competition, its market has shrunk. Therefore, reducing sales volume and profitability of the company, to garb above-trend management considers acquiring Galaxy Pharma Japan-based pharmaceutical company in order to have synergy in economic, financial, and managerial thus outshining other competitors in the market. The product line of the target company itself is attractive to Vibrant Ltd since there will be nothing complex in integrating Galaxy Pharma into Vibrant Ltd. The company wishes to increase its average annual growth by 3% and above per year, which enables the company to maintain the stability of the shareholder wealth and maximize corporation profit, which is one of the major goals of the company stakeholders.

Therefore, the acquisition of Galaxy Pharma will lead to the realization of this objective through reduction in cost, an increase in market share, and an increase in profit, and improvement in the managerial team. The above objective will be achieved if the company understands the impact of the acquisition to the vibrant Ltd business strategy, effective culture transition and merge, development of effective communication channel, the appointment of devoted and experienced transition or integration team, and lastly, ensure that there are plans for achieving the acquisition goals in place for the employees to focus their energy in achieving those set objectives.

We, therefore, recommend the procedure below to be followed carefully in order to have a successful integration and realization of the above objectives. The acquisition is a great sign of expansion for any company but a complex exercise to carry out since a company needs to execute an acquisition deal that is beneficial to shareholders of the company.

Directors of the company are, therefore, required to engage experts in analyzing the suitability of the acquisition in order to avoid the destruction of shareholder value but in return maximize their value in the company (James Kristie, 2006).  

References

James Kristie, (2006), “Why Did You Make that Acquisition,” Boardroom Briefing: Mergers & Acquisitions published by Directors and Boards Magazine, Fall

White, G. I., Sondhi, A. C. and Fried, D. 1994. The analysis and use of financial statements. Wiley.

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Palmer, J. E. 1983. Financial ratio analysis. New York, N.Y.: American Institute of Certified Public Accountants.

Diamond, D. W. and Verrecchia, R. E. 1991. Disclosure, liquidity, and the cost of capital. The journal of Finance, 46 (4), pp. 1325--1359.

Baxter, N. D. 1967. LEVERAGE, RISK OF RUIN AND THE COST OF CAPITAL*. the Journal of Finance, 22 (3), pp. 395—40

Harrison, W. T. & Horngren, C. T. 2001. Financial accounting. Upper Saddle River, NJ: Prentice Hall.

Pratt, S. P. & Grabowski, R. J. 2008. Cost of capital. Hoboken, N.J.: John Wiley & Sons.

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